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Rekenthaler Report

Will Cryptocurrency Protect Against Inflation?

The common assumption might be false.

A Common Belief

It’s natural to think that cryptocurrency guards against rising inflation. The major cryptocurrencies have either fixed their number of coins, or, at the least, have capped their potential circulation growth. Central banks operate otherwise. They create as much money as they wish. Consequently, as with gold, which also has a relatively fixed supply, cryptocurrency is widely regarded as an inflation hedge.